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If you adhere to the contrarian investment philosophy, you'd be salivating at the prospects of loading up on AMD shares, given its chronic underrepresentation in investment portfolios across Wall Street.
To wit, the Bank of America has found via a new survey that active ownership of AMD among fund managers declined to just 20 percent in August 2025, down 3 percentage points relative to May's exposure levels, and constituting a dramatic drop from a year earlier, when 39 percent of the surveyed fund managers retained an active exposure to AMD.
Concurrently, AMD's relative weighing in the S&P 500 index has dropped to 0.16x, down 5 percent quarter-over-quarter and a whopping 80 percent year-over-year, rendering AMD the least owned semiconductor stock in the benchmark index.
Interestingly, this decline has occured even as AMD stock is up 34 percent so far this year, outpacing the Philadelphia Semiconductor index (PHLX).
What's more, AMD's growth story remains largely intact, with the company recently guiding to a revenue target of $8.7 billion for the ongoing quarter, up over 14 percent relative to the just-concluded quarter's aggregate revenue of $7.6 billion.
Do note that AMD reported a GAAP operating loss in Q2 2025, which was largely a function of "the $800 million inventory and related charges associated with US export control restrictions on Instinct MI308 products," as disclosed by the company in its notes to financial statements. These charges swelled the chipmaker's cost of goods sold in Q2 by 59 percent year-over-year.
Now, however, as the Trump administration has eased its heretofore stringent restriction on GPU sales to China, AMD can sell its "obsolesced" MI308 GPUs at "near-zero cost and high gross margin, boosting 2H25 company GMs overall," as per an assessment by Susquehanna.
Elsewhere, AMD has now officially unveiled its MI350 series GPUs, which are based on its 4th-gen Instinct architecture and will become available in the third quarter of 2025. According to AMD, these GPUs are capable of delivering a 4x increase in AI compute power and a 35x increase in inferencing capacity.
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